Source: Dubai – Arabia.net
The Saudi Telecom Company “STC” announced the end of the term of the memorandum of understanding with Vodafone Group (Vodafone) for the possible acquisition of Vodafone Group’s 55% stake in Vodafone Egypt, without reaching an agreement to complete the deal.
The company added, in a statement published on the Saudi market website “Tadawul”, that the end of the extension of the memorandum of understanding is due to the incompatibility with the concerned parties, and the understanding between stc and Vodafone Group was also made to keep the dialogue open.
The “STC”, had extended the memorandum of understanding, last April, for a period of 90 days. She emphasized that the two companies will work during this period to proceed with the transaction procedures, as specified in the memorandum of understanding, indicating that they will announce later on any substantive developments in a timely manner.
The Saudi Telecom Company “STC” signed a non-binding memorandum of understanding with “Vodafone Group” on January 29, 2020, with the aim of acquiring “Vodafone” in “Vodafone Egypt”, which amounts to 55%.
A few days ago, Bloomberg revealed that the Saudi Telecom Company (STC) is negotiating to reduce the non-binding $ 2.39 billion bid to buy a stake in Vodafone Egypt, according to Bloomberg, citing sources.
The deadline for the Saudi “STC” company to proceed with the non-binding offer submitted was supposed to expire in January, and in July the Saudi company extended the memorandum of understanding, for the second time, for a period of 60 days due to the impact of the Corona virus epidemic.
The Egyptian Capital Market Law obliges the Saudi Telecom Company to submit a mandatory purchase offer for the entire stake of Vodafone Egypt, including the stake owned by Telecom Egypt.
Bloomberg indicated that STC said that its bid to buy 55% of Vodafone Egypt, which is the share owned by Vodafone International, brings the total value of the company to 4.35 billion dollars.